diff --git a/environment_setup/iac-create-environment-pipeline-tf.yml b/environment_setup/iac-create-environment-pipeline-tf.yml
index ef184546..008db4c3 100644
--- a/environment_setup/iac-create-environment-pipeline-tf.yml
+++ b/environment_setup/iac-create-environment-pipeline-tf.yml
@@ -1,72 +1,36 @@
-# CI/PR Pipeline that deploys an TF template to create or update the resources needed by the other pipelines.
+# CI/PR Pipeline that deploys an ARM template to create or update the resources needed by the other pipelines.
 trigger:
   branches:
     include:
-    - master
+      - master
   paths:
     include:
-    - environment_setup/tf-templates/*
+      - environment_setup/arm-templates/*
 pr:
   branches:
     include:
-    - master
+      - master
   paths:
     include:
-    - environment_setup/tf-templates/*
+      - environment_setup/arm-templates/*
 
 pool:
-  vmImage: 'ubuntu-latest'
+  vmImage: "ubuntu-latest"
 
 variables:
-- group: devopsforai-aml-vg
+  - group: devopsforai-aml-vg
+  - name: WORKSPACE_SKU # https://docs.microsoft.com/en-us/azure/machine-learning/overview-what-is-azure-ml#sku
+    value: basic
 
 steps:
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-installer.TerraformInstaller@0
-  displayName: 'Use Terraform 0.12.24'
-  inputs:
-    terraformVersion: 0.12.24
-
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
-  displayName: 'TF init - Deploy MLOps resources to Azure'
-  inputs:
-    command: init
-    commandOptions: '-backend=true -backend-config=$(Build.SourcesDirectory)/environment_setup/tf-templates/backend.tf'
-    workingDirectory: '$(Build.SourcesDirectory)/environment_setup/tf-templates'
-    backendType: azurerm
-    backendServiceArm: $(AZURE_RM_SVC_CONNECTION)
-    ensureBackend: true
-    backendAzureRmResourceGroupLocation: $(LOCATION)
-    backendAzureRmResourceGroupName: $(RESOURCE_GROUP)
-    backendAzureRmStorageAccountName: '$(BASE_NAME)statestor'
-    backendAzureRmStorageAccountSku: 'Standard_LRS'
-    backendAzureRmContainerName: 'tfstate-cont'
-    backendAzureRmKey: 'mlopsinfra.tfstate'
-
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
-  displayName: 'TF validate - Deploy MLOps resources to Azure'
-  inputs:
-    command: validate
-    workingDirectory: '$(Build.SourcesDirectory)/environment_setup/tf-templates'
-
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
-  displayName: 'TF plan - Deploy MLOps resources to Azure'
-  inputs:
-    command: plan
-    workingDirectory: '$(Build.SourcesDirectory)/environment_setup/tf-templates'
-    environmentServiceName: $(AZURE_RM_SVC_CONNECTION)
-  env:
-    TF_VAR_BASE_NAME: $(BASE_NAME)
-    TF_VAR_RESOURCE_GROUP: $(RESOURCE_GROUP)
-    TF_VAR_WORKSPACE_NAME: $(WORKSPACE_NAME)
-
-- task: charleszipp.azure-pipelines-tasks-terraform.azure-pipelines-tasks-terraform-cli.TerraformCLI@0
-  displayName: 'TF apply - Deploy MLOps resources to Azure'
-  inputs:
-    command: apply
-    workingDirectory: '$(Build.SourcesDirectory)/environment_setup/tf-templates'
-    environmentServiceName: $(AZURE_RM_SVC_CONNECTION)
-  env:
-    TF_VAR_BASE_NAME: $(BASE_NAME)
-    TF_VAR_RESOURCE_GROUP: $(RESOURCE_GROUP)
-    TF_VAR_WORKSPACE_NAME: $(WORKSPACE_NAME)
-
+  - task: AzureResourceGroupDeployment@2
+    inputs:
+      azureSubscription: "$(AZURE_RM_SVC_CONNECTION)"
+      action: "Create Or Update Resource Group"
+      resourceGroupName: "$(RESOURCE_GROUP)"
+      location: $(LOCATION)
+      templateLocation: "Linked artifact"
+      csmFile: "$(Build.SourcesDirectory)/environment_setup/arm-templates/cloud-environment.json"
+      overrideParameters: "-baseName $(BASE_NAME) -location $(LOCATION) -workspace $(WORKSPACE_NAME) -sku $(WORKSPACE_SKU)"
+      deploymentMode: "Incremental"
+    displayName: "Deploy MLOps resources to Azure"
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